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Trading Litecoin

What is Litecoin?

Litecoin is a direct competitor to Bitcoin in that it supports cross-border payments at very little cost to its users. It is sometimes referred to as the ‘silver’ to Bitcoin’s ‘gold’. Litecoin claims faster transaction confirmation times than Bitcoin. Litecoin sets what are called ‘proof of work’ tasks to computers. This means that they have to solve complex problems as part of the encryption processes that support blockchain.

Owners of the computers that work on blockchain problems can be paid in Litecoin. It shares many of the same characteristics as Bitcoin, but its developers claim it is more efficient.

The big difference between the two is that Litecoin has been set up to be harder to mine at scale, and is faster to process transactions.

How to trade Litecoin

Litecoin has been designed to make it very easy to transact and many people are using Litecoin to make international payments already. It can still be cumbersome to trade this Cryptocurrency on a regular basis using a wallet which is why some investors choose to trade the price of Litecoin using CFDs instead.

Litecoin has a real world value in currency, which will go up and down over time. This is the amount of another established currency (for example USD) one Litecoin unit can be exchanged for.

Without owning: take advantage of Litecoin price volatility without the need for a wallet

Volatility: react more quickly to changes in price without owning Litecoin.

Leverage: trade Litecoin with only a small initial investment

Litecoin can be traded around the clock, as it does not depend on a particular market being open.

Be aware, however, that using leverage to trade Litecoin means you will be more exposed to changes in the price. Make sure that you use stop losses and take profit orders to protect yourself against losses and secure your potential profits. Make sure you are aware of what your total exposure to the Litecoin price is at all times.

Buying vs trading Litecoin

Buying Litecoin requires the use of specialist Cryptocurrency platforms and a Cryptocurrency ‘wallet’ to store your currency in. Trading Litecoin using CFDs allows you to react even more quickly to price changes and take advantage of short term volatility. You don’t need to own Litecoin to be able to trade its price.

Is Litecoin risky?

Litecoin is a volatile market and although this presents opportunities for traders it can also represent risks. Both buying or trading Litecoin involves risk.

Litecoin has high volatility and sharp price fluctuations are very likely

Leveraged trading can magnify both your profits and losses

If you have further questions about trading Ethereum, please see out Crypto FAQs

Factors impacting Litecoin

Litecoin is similar in many respects to Bitcoin. Many experts see it as Bitcoin’s little brother, but with the potential to eclipse Bitcoin because if it’s more efficient transaction system.

A new Cryptocurrency called Litecoin Cash was launched in February 2018. This uses the same algorithm as Bitcoin rather than the Litecoin one. Litecoin Cash is not affiliated with Litecoin, but events like this can create uncertainty and confusion around a Cryptocurrency, undermining confidence and sometimes driving the price down.

Like other Cryptocurrencies, Litecoin’s price is also driven heavily by news flow, rumours and the statements of its global community.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Spread Betting, CFD Trading and Forex Trading are leveraged products. and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

* Spread Betting and CFD Trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

Capital at risk.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Capital at risk.